Supreme Court Cancels Rs 5 Lakh Compensation Order Against Maharashtra FDA
Pune, 5th October 2026: The Supreme Court has set aside the Bombay High Court’s direction requiring the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to M/s. Gurunanak Dairy & Sweets, holding that the FDA’s action was taken in accordance with food safety regulations and in the interest of public health.
The order was passed on October 5 in the case of State of Maharashtra & Ors. v. M/s. Gurunanak Dairy & Sweets. The Supreme Court cancelled the High Court’s direction that the FDA deposit ₹5 lakh as compensation to the concerned establishment.
The matter dates back to June 12, 2026, when the FDA received a complaint concerning food poisoning and inspected the concerned sweets and dairy products establishment in Pune. During the inspection, officials found deficiencies related to sanitation, record maintenance, labelling and the personal hygiene of employees.
Based on these findings, the establishment’s food licence was suspended under the Food Safety and Standards Act, 2006.
The business subsequently filed a statutory appeal before the Commissioner, FDA, on June 15. On July 9, it submitted a compliance report, following which the FDA conducted a re-inspection within four days, on July 13.
The establishment later approached the Bombay High Court through Writ Petition No. 9905 of 2026. On August 17, the High Court lifted the suspension of the food licence and directed the FDA to deposit ₹5 lakh as compensation, citing losses suffered by the business.
State Government Challenges Compensation Order
Before the Supreme Court, the Maharashtra government argued that the FDA’s action was prompted by a food-poisoning complaint. During the inspection, a sample of malai peda was collected for analysis and was subsequently declared unsafe. The government said the licence suspension was therefore undertaken in the interest of public health and in accordance with the Food Safety and Standards Act, 2006.
The government also submitted that the FDA had acted promptly throughout the process and had conducted a re-inspection within four days of receiving the establishment’s compliance report.
It further argued that the establishment’s statutory appeal was pending before the FDA Commissioner and that the authorities had followed the prescribed appellate procedure. The government maintained that the FDA’s action was neither arbitrary nor mala fide and that the time taken as part of a statutory process could not be treated as grounds for imposing compensation on the State.
Supreme Court Sets Aside ₹5 Lakh Direction
After considering the submissions, the Supreme Court cancelled the Bombay High Court’s direction requiring the FDA to pay ₹5 lakh in compensation.
According to the FDA, the Supreme Court’s decision reinforces that action taken under the Food Safety and Standards Act, 2006, based on deficiencies identified during inspections and in the interest of public health, was justified in the circumstances of the case.
The FDA has appealed to citizens to report complaints concerning food quality or malpractice through its toll-free number 1800 222 365 or the Food & Drug Grievance Portal.
